Natural Resources

Land Conservation

Currently, Virginia's laws
create tax incentives and provide state agencies and non-profit organizations
with the authority to conserve land through purchase or conservation easements.
For example, the Virginia Outdoors Foundation was established to promote
the preservation of open space and to encourage private gifts of money,
securities, land, or other property to preserve the open-space and recreational
areas of the Commonwealth.

The Virginia Conservation Easement
Act was enacted in 1988 to provide a legal mechanism to protect open space;
assure its availability for agricultural, forestal, recreational, or open-space
use; protect natural resources; maintain or enhance air or water quality;
or preserve the historical, architectural or archaeological aspects of
real property. The Open-Space Lands Preservation Trust Fund, enacted in
1997, created a fund to be used by the Virginia Outdoors Foundation for
grants to persons conveying conservation easements for costs associated
with such conveyances, such as legal and appraisal costs or all or part
of the value of the easements. In 1999, the Virginia Land Conservation
Foundation (VLCF) was established by the General Assembly to protect land
for natural area protection, open spaces and parks, farmlands and forest
preservation, and historic area preservation. VCLF provides grants to
state agencies, localities, and non-profit groups for acquisition of real
property and conservation easements. For fiscal year 2000, the state budget
included $1.75 million for the foundation. In 2000, the General Assembly
authorized $6.2 million per year for fiscal years 2001 and 2002, plus
an additional amount in the first year for four Civil War battlefields.
However, because of the budget impasse there was no funding allocated
for fiscal year 2002.

The Commission on the Future
of Virginia's Environment has been studying land conservation issues
in light of the tri-state commitment made in the Chesapeake 2000 Agreement
to permanently preserve from development 20 percent of the Chesapeake
Bay watershed by the year 2010. Also, there is concern over the more than
35,000 acres of forest that is lost every year in Virginia and the nearly
500,000 acres of farmland lost to development in the past 10 years.

Advocates of land conservation
have requested that the Commission on the Future of Virginia's Environment
examine ways to secure reliable sources of income to fund Virginia's
land conservation effort. Maryland and North Carolina both have dedicated
sources of funding for land conservation. Maryland spends over $100 million
a year and North Carolina spends over $45 million a year to protect open
space. Pennsylvania, which like Virginia and Maryland entered the Chesapeake
2000 Agreement, has dedicated over $100 million a year to land conservation.
In order for Virginia to become eligible to receive significant federal
funding for land conservation, a non-federal matching contribution is
necessary. In fiscal year 2001, over $50 million in federal funding could
have been available to Virginia for land conservation purposes if adequate
matching funds had been established. With a dedicated funding source,
VCLF can leverage federal funds by providing matching grants to localities
and non-profit organizations.

Last year two bills were introduced,
but failed to pass. The first would have dedicated recordation taxes to
the Virginia Land Conservation Foundation on a phased-in schedule. The
second would have increased recordation taxes to fund the acquisition
and preservation of open spaces. Both bills are expected to be offered
for consideration again in 2002 .

The Commission on the Future
of Virginia's Environment was presented with a number of other options
for providing a dedicated funding source for land conservation. The commission
has not yet decided what course of action it will endorse. The following
is a list of possibilities presented as part of a land conservation package
for consideration:

Re-authorize staff positions
for the Virginia Outdoors Foundation that were lost due to the budget
impasse and provide funding for operations and further staffing needs;

Allow localities to utilize
the current service districts law to raise money for and acquire any
interest in land for conservation;

Give localities the authority
to increase sales taxes by one quarter percent to go towards land conservation.

As a funding alternative, a
conservation and natural resources bond referendum is being reviewed by
the commission. This could be a possible means to fund land conservation
efforts, enabling Virginia to meet the commitments of the Chesapeake 2000
Agreement by providing up to $40 million a year for five years. In addition
to land conservation, the bond package may also include $277 million for
parks and recreation, of which $181 million would go towards new construction
and renovation, $56 million for state park land acquisition, and $40 million
to the Natural Heritage Program for land acquisition. An additional $145
million may be included in the bond package to enable Virginia to meet
other environmental commitments, including upgrading wastewater treatment
plants, repair and upgrading of dams, and clean-up and closure of unlined
out-of-compliance landfills.